Rogers, Bell Slam CRTC Rules—Netflix and Apple Push Back

Canada’s biggest media and telecom companies say outdated regulations are holding them back as traditional TV loses ground to streaming giants like Netflix, Amazon, and Disney+.

Rogers and Bell are urging the Canadian Radio-television and Telecommunications Commission (CRTC) to ease its grip on the industry, arguing that current rules put them at a disadvantage compared to unregulated international streamers, reports the Canadian Press, after looking at public filings that were due Monday.

The CRTC is reviewing how the broadcasting system should adapt to the rise of online streaming, as part of its Online Streaming Act implementation. A formal consultation hearing is set for May in Gatineau, Quebec.

In its filing, Rogers argued that traditional broadcasters are weighed down by regulations that don’t apply to streamers, making it harder to compete.

“Many of the Commission’s existing regulatory tools are ineffective because they undermine the competitiveness of Canadian broadcasting undertakings vis-a-vis global streaming giants,” Rogers said.

The company pointed to mandatory TV channel distribution rules and cable packaging requirements, including the $25 basic TV package, as outdated rules that limit flexibility.

Bell took a similar stance, calling for the CRTC to ease regulations on traditional broadcasters while also introducing new rules for foreign streamers to ensure they contribute to Canadian content.

“However, now that foreign streamers have established a dominant position within an open Canadian broadcasting system, many of these rules significantly undermine the competitiveness of our services,” Bell said in its submission. Bell Media owns Crave and says foreign streamers don’t have to deal with the same rules as local broadcasters.

While Canadian companies want relief, big U.S. streamers are warning the CRTC against overreach.

Apple told the regulator that existing rules were built for traditional broadcasting and don’t make sense in the streaming world. “These tools are neither appropriate nor relevant for online undertakings,” Apple wrote.

Paramount also urged the CRTC to avoid applying old-school regulations to online services, saying the Commission should, “reject proposals to simply transpose prescriptive regulatory tools and requirements designed for a closed linear broadcasting system onto online undertakings.”

As for Netflix? It warned the CRTC not to interfere in business deals between streamers and content owners. “The Commission must tread lightly and avoid overreaching into the economic relationships between online undertakings and other broadcast entities,” Netflix said.

Last October, Apple, Spotify and other organizations urged Canadians to “scrap the streaming tax”, setting up a website to argue its case. Any government regulations that force these companies to pay a tax, will likely see the increases passed on to Canadian consumers (and possibly more).